Hi everyone, I was wondering if i had to register a company (LImited liability company) in order to operate as a wholesaler in Texas?
Also what are the benefits and drawbacks of doing this?
Thanks is for the advice.
No.
There are no tax benefits. Business expenses are always deductible. Either way it’s all ordinary income subject to the same SET.
It would cost you a few hundred bucks to set up an LLC in TX.
Setting up a LLC is not just about deducting expenses or the cost to set one up. It is about protecting your liability. But, since you are not purchasing property, I do not see if a LLC would necessarily protect you. My best recommendation is to call an attorney to check if a LLC would protect your personal assets from a lawsuit.
When u are doing several deals a month u will eventually want to get an LLC. :bobble
No, you don’t have to in order to get started but eventually YES, you should.
A great advantage about this business is when first starting out you don’t have to worry starting your wholesaling company as an entity. The more your business grows, you should definitely think about getting incorporated. :smile
LLCs mitigate the financial liability of their owners by limiting the financial liability to only the corporate assets.basically when your business grows to a point when it is necessary to protect yourself go for incorporation.
I started my business as a sole proprietorship. But later as I begin to do more deals I will switch it to an LLC…does a sole proprietorship hurt you as a wholesaler ?